BurTech Acquisition (BRKH) - 2025 Q1 - Quarterly Report

Revenue and Sales Performance - Total revenue increased by 83% to $1.0 million for the three months ended March 31, 2025, compared to approximately$0.5 million for the same period in 2024[220]. - Hardware product sales accounted for the entire revenue of $1.0 million, offset by a$0.5 million decrease due to the end of a multi-year license and development contract[220]. - Revenue from the Asia Pacific region was $960,000, representing 95$333,000 or 61% in Q1 2024[221]. - For the three months ended March 31, 2025, 100% of the revenue was derived from international operations, compared to 61% for the same period in 2024[252]. - For the three months ended March 31, 2025, one customer accounted for approximately 95% of total revenue, while two customers accounted for 100% of revenue in the same period in 2024[258]. Business Opportunities and Partnerships - The company has identified a potential $458 million in future business opportunities through near-term customer implementations[209]. - As of March 31, 2025, the company has initiated or is in progress with 40 proof-of-concept projects with potential customers[211]. - The company has established 34 partnerships with independent software and hardware vendors as of March 31, 2025[212]. - A total of 21 design wins have been confirmed with partners or customers as of March 31, 2025[213]. Mergers and Shareholder Information - The merger with BurTech Acquisition Corp was completed on January 13, 2025, with Legacy Blaize becoming a wholly owned subsidiary[198]. - Legacy Blaize shareholders were issued 87,314,968 shares of common stock upon the merger[199]. - The company has an earnout arrangement that includes up to 3,750,000 shares to be issued based on stock price thresholds ranging from$12.50 to $20.00 per share[210]. Expenses and Financial Performance - Cost of revenue for the three months ended March 31, 2025 increased by$21,000, or 7%, compared to the same period in 2024, primarily due to hardware sales[223]. - Research and development expenses rose by $9.0 million, or 220$9.4 million, or 235%, for the three months ended March 31, 2025, mainly due to employee-related costs and professional services[225]. - Total operating expenses for the three months ended March 31, 2025 were $39.0 million, a significant increase of 349$8.7 million in 2024[222]. - Total other expense, net for the three months ended March 31, 2025 was $109.6 million, reflecting an increase of$101.1 million, or 1,198%, compared to the same period in 2024[230]. - Net loss for the three months ended March 31, 2025 was approximately $147.8 million, compared to a net loss of$16.7 million for the same period in 2024[233]. Cash Flow and Liquidity - Cash and cash equivalents as of March 31, 2025 were approximately $45.0 million, with an accumulated deficit of$577.0 million[235]. - Net cash used in operating activities was $15.9 million for the three months ended March 31, 2025, compared to$7.4 million in 2024[239]. - The company expects to raise additional financing to support revenue growth and operational needs, indicating potential future capital raises[236]. - The company has determined that its liquidity condition raises substantial doubt about its ability to continue as a going concern[237]. Credit and Currency Risk - As of March 31, 2025, one customer accounted for approximately 95% of total accounts receivable, down from 98% as of December 31, 2024[257]. - The allowance for credit losses was $0.4 million as of March 31, 2025, and December 31, 2024[256]. - The company is primarily exposed to foreign currency exchange rate risk, particularly in the Indian rupee, British pound, and Philippine peso[253]. - The gain on foreign exchange transactions was not material for the three months ended March 31, 2025, and 2024[254]. - The company manages credit risk through ongoing evaluations of customers' financial conditions and establishes an allowance for credit losses based on various factors[256]. - The company’s reporting and functional currency is the U.S. dollar, which is affected by movements in foreign currencies[253]. - The company has a strategy to manage foreign currency risk by negotiating contracts to receive payments in the same currency used for expenses[252]. - The cash accounts in financial institutions may exceed the Federal Depository Insurance coverage of$250,000, exposing the company to credit risk[255].